ITR 4 OR ITR 3 WHICH FORM CHOOSE
This query is : Resolved
17 July 2026
Sir,
I have a client with the following facts:
* Trading turnover: ₹12,10,000
* Business income is being offered under Section 44AD at ₹4,00,000.
* The assessee is also engaged in money lending and has earned interest income of ₹2,00,000.
* No books of account are maintained.
My query is:
1. Can the money lending interest of ₹2,00,000 be offered under **"Income from Other Sources"** while declaring the trading business income under **Section 44AD** in **ITR-4**?
2. Or, should the return be filed in **ITR-3**, selecting **"No books of account maintained"**, with trading income under **Section 44AD** and the money lending interest offered under the head **"Income from Other Sources"**?
3. Which approach is legally more appropriate and safer during scrutiny?
Sir,
I have a client with the following facts:
* Trading turnover: ₹12,10,000
* Business income is being offered under Section 44AD at ₹4,00,000.
* The assessee is also engaged in money lending and has earned interest income of ₹2,00,000.
* No books of account are maintained.
My query is:
1. Can the money lending interest of ₹2,00,000 be offered under **"Income from Other Sources"** while declaring the trading business income under **Section 44AD** in **ITR-4**?
2. Or, should the return be filed in **ITR-3**, selecting **"No books of account maintained"**, with trading income under **Section 44AD** and the money lending interest offered under the head **"Income from Other Sources"**?
3. Which approach is legally more appropriate and safer during scrutiny?
Dhirajlal Rambhia
(Expert)
17 July 2026
Legally you should file ITR 3.
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